Cash flow from operating activities of $6.6 million, and $10.9 million before changes in working capital.

Secured $22 million in credit facilities with three major Brazilian banks

Implemented forward contract currency hedges for 2019 at an average fixed rate of R$3.40 to US$1.00 for R$120 million and at R$3.50 to US$1.00 for $120 million.

Hedged 30,000 ounces of gold over 15 months with zero cost collars with a put and call strike prices of $1,300 and $1,340 per ounce of gold, respectively.

(1) A non-GAAP financial measure. For a reconciliation of non-GAAP financial measures, please see the end of this press release.

Q3 2017 Summary Financial Results

For the three months
ended September 30,

For the nine months
ended September 30,

In thousands of U.S. Dollars

2017

2016

2017

2016

Revenues from mining operations

$54,126

$60,559

$166,478

$172,846

Mine operating earnings

$3,999

$7,550

$14,022

$32,304

Net (loss)/earnings

$(10,003)

$(15,534)

$(14,987)

$5,255

Adjusted (loss)/earnings(1)

$(6,752)

$(6,686)

$(7,819)

$(3,137)

Adjusted EBITDA(1)

$9,653

$13,032

$29,068

$45,301

Cash flow from operating activity

$6,570

$13,998

$326

$38,860

Cash flow from operating activities before changes in working capital

$10,902

$15,506

$30,616

$50,446

(1)

A non-GAAP financial measure. For a reconciliation of non-GAAP measures, please see the end of this press release.

Revenues from mining operations were $54.1 million in the third quarter of 2017 compared to $60.6 million for the comparable period in 2016 due to lower ounces sold.

Net loss in the third quarter of 2017 was $10.0 million or $0.09 per share, compared to a net loss of $15.5 million or $0.63 per share for the third quarter of 2016. The Company sold VAT tax credits in the quarter that resulted in a gain of $4.4 million, which is excluded from the calculation of adjusted earnings.

The adjusted loss in the third quarter of 2017 was $6.8 million compared to $6.7 million in the same period of 2016 as lower revenue was partially offset by lower depreciation expense.

The adjusted EBITDA in the third quarter of 2017 was $9.7 million compared to $13.0 million in the same period of 2016 due to the lower ounces sold, and higher costs of sales per ounce.

Cash flow from operating activities after changes in working capital for the third quarter of 2017 was an inflow of $6.6 million, compared to an inflow of $14.0 million in the same period of 2016 due to lower ounces sold, and a decline in working capital due to timing of gold shipments that is expected to reverse in the fourth quarter of 2017.

The Company has secured $22 million in credit facilities with three major Brazilian banks at an average interest rate of 4%. The Company plans to utilize these credit facilities for working capital purposes at its operations and is currently assessing other debt funding alternatives including increasing its current $75 million corporate credit facility and direct project financing for the completion of the Santa Luz Mine recommissioning project.

During the third quarter, the Company entered into gold price hedging arrangements in order to manage cash flow during the development phase of the Santa Luz mine. On September 20, 2017, the Company entered into a zero-cost collar contract, where gold puts were purchased and gold calls were sold with put and call strike prices of $1,300 and $1,340 per ounce, respectively, for 2,000 ounces per month. These purchases and sales will be made from October 2017 to December 2018, inclusive, totaling 30,000 ounces of gold.

Subsequent to the quarter end, the Company entered into forward currency contracts of R$120 million for 2019, at a fixed exchange rate that averages R$3.40 to US$1.00 and R$120 million at a fixed exchange rate that average R$3.50 to US$1.00. The Company already has currency hedging arrangements in place for 2017 and 2018. In 2017 and 2018, Brio Gold has R$672 million of forward rate contracts at a rate of R$3.55 to US$1.00 and R$672 million of zero-cost collars with average call and put strike prices of R$3.30 and R$3.90, respectively.

Q3 2017 Summary Operational Results

For the three months ended September 30,

For the nine months ended September 30,

2017

2016

Change

2017

2016

Change

Gold production (oz) (1)

42,913

46,076

(7)%

137,676

139,185

(1)%

Gold sales (oz) (1)

43,228

46,808

(8)%

135,534

140,403

(3)%

Average realized gold price(2)

$1,267

$1,309

(3)%

$1,242

$1,243

-%

Total cost of sales per gold ounce sold(1)

$1,160

$1,132

2%

$1,124

$1,001

12%

Cash cost per gold ounce produced (1,2)

$876

$813

8%

$858

$714

20%

Consolidated AISC per gold ounce produced (1,2)

$1,228

$1,157

6%

$1,119

$965

16%

Notes:

(1)

Operating statistics only include RDM from the date that it was acquired on April 29, 2016.

(2)

A non-GAAP financial measure. For a reconciliation of non-GAAP measures see the end of this press release.

Production during the third quarter from the Company's three producing mines was 42,913 ounces of gold, 7% lower than the comparative quarter of 2016.

At the Pilar mine, third quarter production decreased 6% when compared to the same period in 2016. Gold feed grades were significantly lower as a result of a proportional increase in production from the lower grade Maria Lazara deposit and an increased percentage of ore development tonnage at the main Pilar Mine, which led to higher overall dilution. The Company ran the mill at its full design capacity in the quarter, which corresponds to an annual design rate of 1.4 million tonnes per year, or 26% greater throughput year over year. The Company is now confident that the plant can sustain this rate as Brio Gold, in the future, introduces low cost ore from the Tres Buracos open pit development project at Pilar. The Company now intends to return to a lower throughput rate by reducing development ore tonnage and Maria Lazara production, focusing on cost containment and grade. Although this is expected to impact production in the fourth quarter, ultimately cash flow should improve with reduced cost and improved margins. The Company now expects 2017 production for Pilar to be 78,000 to 83,000 ounces.

At Fazenda Brasileiro, third quarter production in 2017 was 8% lower than the same period last year primarily due to lower feed grades as a result of mine sequencing, partially offset by higher recoveries. Feed grade significantly improved month-over-month within the quarter. The Company expects grade to continue to show improvements in the fourth quarter with production forecasted to increase and provide the strongest quarter for Fazenda Brasileiro in 2017. To reflect actual production year to date, the Company expects production at Fazenda Brasileiro to be 60,000 to 65,000 ounces.

The RDM mine was put on care and maintenance for 51 days during the quarter due to a lack of water as a result of continued dry season conditions. At the end of October, the rainy season commenced and the Company is now in the process of re-starting the RDM mine. Consistent production is expected going forward at RDM with the water storage facility complete. The Company expects production for 2017 at RDM to be 45,000 to 50,000 ounces of gold. An ore stockpile was built up in the third quarter to provide process flexibility for when the mine resumes production

Breakdown by Mine

For the three monthsended September 30,

For the nine months ended September 30,

Gold production (oz)

2017

2016

Change

2017

2016

Change

Pilar

19,045

20,237

(6)%

59,816

64,891

(8)%

Fazenda Brasileiro

15,915

17,211

(8)%

44,879

52,608

(15)%

RDM(1)

7,953

8,628

(8)%

32,981

21,686

52%

Total Production

42,913

46,076

(7)%

137,676

139,185

(1)%

Total Cost of Sales ($ per oz sold)

Pilar

$1,212

$1,152

5%

$1,123

$1,023

10%

Fazenda Brasileiro

$1,152

$998

15%

$1,161

$901

29%

RDM(1)

$1,046

$1,342

(22)%

$1,078

$1,189

(9)%

Total Cost of Sales per gold oz sold

$1,160

$1,132

2%

$1,124

$1,001

12%

Cash Costs ($ per oz produced)

Pilar

$845

$791

7%

$820

$698

17%

Fazenda Brasileiro

$943

$751

26%

$877

$667

31%

RDM(1)

$815

$986

(17)%

$900

$878

3%

Total Cash Costs

$876

$813

8%

$858

$714

20%

AISC ($ per oz produced)

Pilar

1,085

1,067

2%

1,035

884

17%

Fazenda Brasileiro

1,158

1,039

11%

1,055

883

19%

RDM(1)

1,241

1,174

6%

1,022

999

2%

Total Mine AISC ($ per oz produced)

1,141

1,077

6%

1,038

897

16%

Total Consolidated AISC ($ per oz produced)

1,228

1,157

6%

1,119

965

16%

Notes:

(1)

Operating statistics only include RDM from the date that it was acquired on April 29, 2016.

Third Quarter 2017 Financial Results Conference Call and Webcast

Brio Gold will hold a conference call and webcast on November 1, 2017 at 10:00 am ET.

The conference call replay will be available from 1:00 p.m. ET on November 1, 2017 until 12:00 p.m. ET on November 8, 2017.

About Brio Gold

Brio Gold is a Canadian mining company with significant gold producing, development and exploration stage properties in Brazil. Brio Gold's portfolio includes three operating gold mines and a fully-permitted, fully-constructed mine that was on care and maintenance and currently is in development to be re-started at the end of 2018. Brio Gold produced approximately 190,000 ounces of gold in 2016 and at full run-rate expects annual production to be approximately 400,000 ounces of gold.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This news release contains or incorporates by reference "forward-looking statements" and "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to information with respect to the Company's strategy, plans or future financial or operating performance, the outcome of the legal matters involving the damages assessments and any related enforcement proceedings. Forward-looking statements are characterized by words such as "plan," "expect", "budget", "target", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the production and exploration, development and expansion plans at the Company's projects discussed herein being met, the impact of proposed optimizations at the Company's projects, the impact of the proposed new mining law in Brazil, and the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating metal prices (such as gold and silver), currency exchange rates (such as the Brazilian real versus the United States dollar), the impact of inflation, possible variations in ore grade or recovery rates, changes in the Company's hedging program, changes in accounting policies, changes in mineral resources and mineral reserves, risks related to asset disposition, risks related to metal purchase agreements, risks related to acquisitions, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, unanticipated costs and expenses, higher prices for fuel, steel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life, unanticipated results of future studies, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting timelines, government regulation and the risk of government expropriation or nationalization of mining operations, risks related to relying on local advisors and consultants in foreign jurisdictions, environmental risks, unanticipated reclamation expenses, risks relating to joint venture operations, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending and outstanding litigation and labour disputes, risks related to enforcing legal rights in foreign jurisdictions, as well as those risk factors discussed or referred to herein. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. The reader is cautioned not to place undue reliance on forward-looking statements. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and results as at and for the periods ended on the dates presented in the Company's plans and objectives and may not be appropriate for other purposes.

Non-GAAP Financial Measures

The Company has included certain non-GAAP financial measures including cash costs per ounce of gold produced, all-in sustaining costs per ounce of gold produced, adjusted earnings (loss), and adjusted EBITDA to supplement its consolidated financial statements, which are presented in accordance with IFRS.

The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. Non-GAAP financial measures do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures employed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Cash Costs

The Company uses the non-GAAP financial measure "cash costs" on a per ounce of gold produced basis because it believes this measure provides investors and analysts with useful information about the Company's underlying cash costs of operations and is a relevant metric used to understand the Company's operating profitability, and ability to generate cash flow. Cash costs figures are calculated based on the standard developed by The Gold Institute, which was a worldwide association of suppliers of gold and gold products and included leading North American gold producers. The Gold Institute ceased operations in 2002, but the standard remains the generally accepted standard of reporting cash costs of production in North America. Adoption of the standard is voluntary and the cost measures presented herein may not be comparable to other similarly titled measures of other companies.

Cash costs include mine site operating costs such as mining, processing, administration, production taxes and royalties, which are not based on sales or taxable income calculations, but are exclusive of amortization, reclamation, capital, development, and exploration costs. Cash costs per ounce of gold produced are calculated on a weighted average basis.

The term "cash costs" has no standard meaning and therefore, the Company's definitions are unlikely to be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and is not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS.

All-in Sustaining Costs

The Company uses the non-GAAP financial measure "all-in sustaining costs", also referred to as "AISC", on a per ounce of gold produced basis because it believes this measure provides investors with useful information about the Company's underlying cash costs of operations, after deducting certain non-discretionary items such as sustaining capital expenditures, exploration expenses and certain general and administrative costs and is a relevant metric used to understand the Company's ability to generate cash flow. All-in sustaining costs are based on cash costs, including cost components of mine sustaining capital expenditures and exploration and evaluation expense. All-in sustaining costs for a mine do not include capital expenditures attributable to projects or mine expansions, exploration and evaluation costs attributable to growth projects, Brio Gold corporate general and administrative expenses, Yamana general and administrative expenses allocated to Brio Gold or stock-based compensation, income tax payments, financing costs and dividend payments. Consequently, this measure is not representative of all of the Company's cash expenditures. In addition, the calculation of all-in sustaining costs does not include depletion, depreciation and amortization expense as it does not reflect the impact of expenditures incurred in prior periods. The term "all-in sustaining costs" has no standard meaning and therefore, the Company's definitions are unlikely to be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and is not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS.

Reconciliation of cost of sales including depletion, depreciation and amortization to cash costs and all-in sustaining costs, consolidated and per mine

(In thousands of U.S. dollars, except per share and per ounce amounts)

Consolidated

Pilar Mine

Fazenda
Brasileiro
Mine

RDM Mine

Cost of sales including depletion, depreciation and amortization

50,127

22,348

19,196

8,497

Depletion, depreciation and amortization

(10,442

)

(5,868

)

(3,356

)

(1,132

)

Adjustments:

Inventory movement and adjustments(1)

(2,093

)

(387

)

(832

)

(883

)

Cash costs(2)

37,592

16,093

15,008

6,482

General and administrative expenses attributable to all-in sustaining costs

5,470

99

86

103

Stock based compensation

(1,888

)

-

-

-

Sustaining capital expenditures

11,523

4,472

3,336

3,285

All-in sustaining costs(2)

52,697

20,664

18,430

9,870

Cost of sales including depletion, depreciation and amortization per gold ounce sold

1,160

1,212

1,152

1,046

Cash cost per gold ounce produced(2)

876

845

943

815

All-in sustaining costs per ounce produced(2)

1,228

1,085

1,158

1,241

Gold ounces produced during the period (oz.)

42,913

19,045

15,915

7,953

Gold ounces sold during the period (oz.)

43,228

18,444

16,658

8,126

For the three months ended September 30, 2016

(In thousands of U.S. dollars, except per share and per ounce amounts)

Consolidated

Pilar Mine

Fazenda
Brasileiro
Mine

RDM Mine

Cost of sales including depletion, depreciation and amortization

53,009

23,787

17,072

12,150

Depletion, depreciation and amortization

(13,936

)

(9,295

)

(3,792

)

(849

)

Adjustments:

Inventory movement and adjustments(1)

(1,613

)

1,515

(355

)

(2,794

)

Cash costs(2)

37,460

16,007

12,925

8,507

General and administrative expenses attributable to all-in sustaining costs

5,509

26

44

30

Stock based compensation

(1,742

)

-

-

-

Sustaining capital expenditures

12,065

5,560

4,913

1,592

All-in sustaining costs(2)

53,292

21,593

17,882

10,129

Cost of sales including depletion, depreciation and amortization per gold ounce sold

$

1,132

$

1,152

$

998

$

1,342

Cash cost per gold ounce produced(2)

$

813

$

791

$

751

$

986

All-in sustaining costs per ounce produced(2)

$

1,157

$

1,067

$

1,039

$

1,174

Gold ounces produced during the period (oz.)

46,076

20,237

17,211

8,628

Gold ounces sold during the period (oz.)

46,808

20,656

17,100

9,052

For the nine months ended September 30, 2017

(In thousands of U.S. dollars, except per share and per ounce amounts)

Consolidated

Pilar Mine

Fazenda
Brasileiro
Mine

RDM Mine

Cost of sales including depletion, depreciation and amortization

152,456

65,936

50,272

36,162

Depletion, depreciation and amortization

(35,348

)

(17,150

)

(13,136

)

(4,976

)

Adjustments:

Inventory movement and adjustments(1)

1,018

263

2,223

(1,503

)

Cash costs(2)

118,126

49,049

39,359

29,683

General and administrative expenses attributable to all-in sustaining costs

17,041

873

677

413

Stock based compensation

(5,632

)

-

-

-

Sustaining capital expenditures

24,524

11,988

7,311

3,611

All-in sustaining costs(2)

152,820

61,910

47,347

33,707

Cost of sales including depletion, depreciation and amortization per gold ounce sold

1,124

1,123

1,161

1,078

Cash cost per gold ounce produced(2)

858

820

877

900

All-in sustaining costs per ounce produced(2)

1,119

1,035

1,055

1,022

Gold ounces produced during the period (oz.)

137,676

59,816

44,879

32,981

Gold ounces sold during the period (oz.)

135,534

58,702

43,283

33,549

For the nine months ended September 30, 2016

(In thousands of U.S. dollars, except per share and per ounce amounts)

Consolidated

Pilar Mine

Fazenda
Brasileiro
Mine

RDM Mine

Cost of sales including depletion, depreciation and amortization

140,542

65,737

48,998

25,807

Depletion, depreciation and amortization

(40,494

)

(25,605

)

(12,822

)

(2,067

)

Adjustments:

Inventory movement and adjustments(1)

(670

)

5,162

(1,086

)

(4,700

)

Cash costs(2)

99,378

45,294

35,090

19,040

General and administrative expenses attributable to all-in sustaining costs

16,426

560

214

34

Stock based compensation

(5,226

)

-

-

-

Sustaining capital expenditures

23,755

11,501

11,150

2,580

All-in sustaining costs(2)

134,333

57,355

46,454

21,654

Cost of sales including depletion, depreciation and amortization per gold ounce sold

1,001

1,023

901

1,189

Cash cost per gold ounce produced(2)

714

698

667

878

All-in sustaining costs per ounce produced(2)

965

884

883

999

Gold ounces produced during the period (oz.)

139,185

64,891

52,608

21,686

Gold ounces sold during the period (oz.)

140,403

64,289

54,408

21,706

Notes:

(1)

Inventory movement and adjustment represent the difference between the costs of production (which are based on ounces produced) and the cost of sales (which is based on ounces sold). The timing difference between the units sold and the costs of those units requires an adjustment to reflect the nature of the underlying metric.

(2)

A non-GAAP financial measure.

Quarterly trailing cost of sales including depletion, depreciation and amortization to cash costs consolidated and per mine

(In thousands of U.S. dollars, except per share and per ounce amounts)

Q3-17

Q2-17

Q1-17

Q4-16

Cost of sales including depletion, depreciation and amortization

50,127

48,646

53,684

71,169

Depletion, depreciation and amortization

(10,442

)

(11,541

)

(13,366

)

(26,275

)

Adjustments:

Inventory movement and adjustments(1)

(2,093

)

877

2,254

(2,897

)

Cash costs(2)

37,592

37,982

42,572

41,997

Cost of sales including depletion, depreciation and amortization per gold ounce sold

1,160

1,139

1,082

1,421

Cash cost per gold ounce produced(2)

876

859

842

832

Gold ounces produced during the period (oz.)

42,913

44,223

50,540

50,477

Gold ounces sold during the period (oz.)

43,228

42,691

49,615

50,092

Brio Gold Consolidated

(In thousands of U.S. dollars, except per share and per ounce amounts)

Q3-16

Q2-16

Q1-16

Q4-15

Cost of sales including depletion, depreciation and amortization

53,009

54,265

33,111

39,812

Depletion, depreciation and amortization

(13,936

)

(15,752

)

(10,855

)

(14,076

)

Adjustments:

Inventory movement and adjustments(1)

(1,614

)

(226

)

1,382

(1,850

)

Cash costs(2)

37,459

38,287

23,638

23,886

Cost of sales including depletion, depreciation and amortization per gold ounce sold

1,132

1,037

803

1,016

Cash cost per gold ounce produced(2)

813

726

590

610

Gold ounces produced during the period (oz.)

46,076

52,737

40,372

39,279

Gold ounces sold during the period (oz.)

46,808

52,351

41,243

39,194

Pilar Mine

(In thousands of U.S. dollars, except per share and per ounce amounts)

Q3-17

Q2-17

Q1-17

Q4-16

Cost of sales including depletion, depreciation and amortization

22,348

22,635

20,953

36,843

Depletion, depreciation and amortization

(5,868

)

(6,213

)

(5,070

)

(17,919

)

Adjustments:

Inventory movement and adjustments(1)

(387

)

436

258

408

Cash costs(2)

16,093

16,858

16,141

19,332

Cost of sales including depletion, depreciation and amortization per gold ounce sold

1,212

1,144

1,024

1,687

Cash cost per gold ounce produced(2)

845

831

788

872

Gold ounces produced during the period (oz.)

19,045

20,287

20,484

22,170

Gold ounces sold during the period (oz.)

18,444

19,793

20,465

21,837

Pilar Mine

(In thousands of U.S. dollars, except per share and per ounce amounts)

Q3-16

Q2-16

Q1-16

Q4-15

Cost of sales including depletion, depreciation and amortization

23,787

22,554

19,726

19,237

Depletion, depreciation and amortization

(9,295

)

(8,782

)

(7,577

)

(5,682

)

Adjustments:

Inventory movement and adjustments(1)

1,515

1,713

1,626

(374

)

Cash costs(2)

16,007

15,485

13,775

13,181

Cost of sales including depletion, depreciation and amortization per gold ounce sold

1,152

1,023

914

851

Cash cost per gold ounce produced(2)

791

679

641

618

Gold ounces produced during the period (oz.)

20,237

22,806

21,848

21,326

Gold ounces sold during the period (oz.)

20,656

22,047

21,586

22,617

Fazenda Brasileiro Mine

(In thousands of U.S. dollars, except per share and per ounce amounts)

Q3-17

Q2-17

Q1-17

Q4-16

Cost of sales including depletion, depreciation and amortization

19,196

14,624

16,452

20,530

Depletion, depreciation and amortization

(3,356

)

(3,189

)

(6,591

)

(5,870

)

Adjustments:

Inventory movement and adjustments(1)

(832

)

1,135

1,932

(896

)

Cash costs(2)

15,008

12,570

11,793

13,764

Cost of sales including depletion, depreciation and amortization per gold ounce sold

1,152

1,145

1,188

1,074

Cash cost per gold ounce produced(2)

943

892

793

753

Gold ounces produced during the period (oz.)

15,915

14,092

14,872

18,279

Gold ounces sold during the period (oz.)

16,658

12,776

13,849

19,110

Fazenda Brasileiro Mine

(In thousands of U.S. dollars, except per share and per ounce amounts)

Q3-16

Q2-16

Q1-16

Q4-15

Cost of sales including depletion, depreciation and amortization

17,072

17,784

14,368

20,054

Depletion, depreciation and amortization

(3,792

)

(5,484

)

(3,556

)

(8,394

)

Adjustments:

Inventory movement and adjustments(1)

(355

)

(50

)

(910

)

(914

)

Cash costs(2)

12,925

12,250

9,902

10,746

Cost of sales including depletion, depreciation and amortization per gold ounce sold

998

1,008

731

1,210

Cash cost per gold ounce produced(2)

751

726

536

599

Gold ounces produced during the period (oz.)

17,211

16,873

18,524

17,953

Gold ounces sold during the period (oz.)

17,100

17,650

19,657

16,577

RDM, Brazil

(In thousands of U.S. dollars, except per share and per ounce amounts)

Q3-17

Q2-17

Q1-17

Q4-16

Q3-16

Q2-16

Cost of sales including depletion, depreciation and amortization

8,497

11,387

16,278

13,660

12,150

13,080

Depletion, depreciation and amortization

(1,132

)

(2,139

)

(1,705

)

(2,477

)

(849

)

(1,217

)

Adjustments:

Inventory movement and adjustments(1)

(883

)

(694

)

64

(2,278

)

(2,794

)

(1,334

)

Cash costs(2)

6,482

8,554

14,637

8,905

8,507

10,529

Cost of sales including depletion, depreciation and amortization per gold ounce sold

1,046

1,125

1,064

1,494

1,342

1,079

Cash cost per gold ounce produced(2)

815

869

964

888

986

807

Gold ounces produced during the period (oz.)

7,953

9,844

15,184

10,028

8,628

13,058

Gold ounces sold during the period (oz.)

8,126

10,122

15,301

9,146

9,052

12,654

Notes:

(1)

Inventory movement and adjustment represent the difference between the costs of production (which are based on ounces produced) and the cost of sales (which is based on ounces sold). The timing difference between the units sold and the costs of those units requires an adjustment to reflect the nature of the underlying metric.

(2)

A non-GAAP financial measure.

(3)

RDM was acquired during Q2 2016, therefore Q4 2015 and Q1 2016 are not applicable

Adjusted EBITDA

The Company uses the non-GAAP financial measure "Adjusted EBITDA" because it believes it provides investors with useful information to evaluate its performance and understand its ability to service and/or incur indebtedness.

The Company defines Adjusted EBITDA as net loss, before income tax recovery (expense), depletion, depreciation and amortization, impairment and reversals of mining properties, interest expense, share-based compensation, and non-recurring provisions and other adjustments.

The term "Adjusted EBITDA" has no standard meaning and therefore, the Company's definitions are unlikely to be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and is not necessarily indicative of operating costs, operating profit or cash flows presented under IFRS.

The Company uses the non-GAAP financial measure "Adjusted earnings or loss" because it believes this measure provides useful information to investors to evaluate the Company's performance by excluding certain cash and non-cash charges. The presentation of Adjusted earnings or loss is not meant to be a substitute for net earnings or loss or net earnings or loss per share presented in accordance with IFRS, but rather should be evaluated in conjunction with such IFRS measures. Adjusted earnings or loss is calculated as net earnings excluding (a) stock based compensation, (b) unrealized foreign exchange (gains) losses related to revaluation of deferred income tax asset and liability on non-monetary items, (c) unrealized foreign exchange (gains) losses related to other items, (d) impairment losses and reversals, (e) deferred income tax expense (recovery) on the translation of foreign currency inter corporate debt, (f) periodic tax adjustments to historical deferred income tax balances relating to changes in enacted tax rates and (g) non-cash provisions and any other non-recurring adjustments. Non-recurring adjustments from unusual events or circumstances are reviewed from time to time based on materiality and the nature of the event or circumstance. Earnings adjustments for the comparative period reflect continuing operations.

The terms "Adjusted earnings or loss" has no standardized meaning prescribed by IFRS and therefore the Company's definitions are unlikely to be comparable to similar measures presented by other companies.

For more information, see the Condensed Consolidated Interim Financial Statements and the related notes.

The Company uses the non-GAAP financial measure "realized price" on a per ounce of gold sold basis because it believes this measure provides investors and analysts with a more accurate measure with which to compare to market gold prices and to assess the Company's gold sales performance. Management believes that this measure provides a more accurate reflection of past performance and is a better indicator of expected performance in future periods. Realized price excludes the impact of the mining royalty on revenue from mining operations. The term "realized price" has no standard meaning and therefore, the Company's definitions are unlikely to be comparable to similar measures presented by other companies and should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and is not necessarily indicative of revenue from mining operations, operating profit or cash flows presented under IFRS.

Reconciliation of Revenue from Mining Operations to Realized Price per Gold Ounce Sold